Town reverts to per capita rate for RRFDC

Instead of paying up to $112,000 a year for the Rainy River Future Development Corp.’s services, from now on Fort Frances will be paying the RRFDC just like all other district municipalities—strictly on a per capita basis.
What this means is the town will be paying about $58,000 annually for the RRFDC’s services, with any special projects to be paid on a fee-for-service basis, saving the town money in a tight budget year.
The RRFDC isn’t looking at the funding reduction—from $14 to $7 per capita—as a bad thing.
“The board of directors of the Rainy River Future Development Corp. is pleased that the Town of Fort Frances has decided to continue working towards the economic enhancement of the entire Rainy River District,” RRFDC chair Telford Advent wrote in a letter to council.
“They are also well aware of the financial constraints under which mayor and council are now working and they are pleased that Fort Frances will continue to play a significant role in the development of the entire region,” he added.
“Let us assure you that the RRFDC will always put the welfare of Fort Frances and the Rainy River District in the forefront of any decision pertaining to economic development,” Advent stressed.
Under a per capita arrangement, the RRFDC will continue to promote the economic development of the entire Rainy River District, including Fort Frances, by working with area entrepreneurs, business organizations, and municipalities based upon project viability and its clients’ needs as determined by the RRFDC, Advent said.
The board and staff are willing to work with Fort Frances in the coming months as the town reallocates the responsibilities and workloads of the more specific projects which the RRFDC had been doing under the previous arrangement, added Advent.
“We are available, at any time, to initiate this process and to discuss any additional services that are required by council should they arise,” he noted.
“Finally, the RRFDC will also continue to undertake three basic functions as required by FedNor: business counselling, business lending, and strategic planning.”
Economic development officer Geoff Gillon echoed these sentiments, saying he was glad the town decided to continue to support the RRFDC, as other district municipalities are, despite their financial situation.
He noted this arrangement is similar to the way things were done before the previous council decided to retain Gillon—and thus increase what the town was paying the RRFDC—for a myriad of projects.
Two recent examples include the selling the old Fort Frances High School property on First Street East as well as developing a community improvement plan and financial incentive plan.
Gillon said the RRFDC will have to make “internal adjustments” to account for the change in money from the town.
He noted he also will be working closely in the near future with Fort Frances CAO Mark McCaig to review what the RRFDC has been doing and what it might not be able to do any more (at least not on a fee-for-service basis).
“We’re still very much involved with the RRFDC. It hasn’t changed in a lot of ways,” McCaig said Monday.
“I can envision some things coming down the line where we’ll be utilizing them on a fee-for-service basis,” he added.
During a brief discussion at Monday night’s council meeting, Mayor Dan Onichuk noted the town’s Economic Development Advisory Committee, which Gillon will continue to sit on, still will to play an important role here.
This includes exploring pertinent economic development issues and then bringing them before council with recommendations, at which time council will determine whether it wants to go ahead with them.
After that, the town would contact the RRFDC, which, in turn, would give the town a cost for the service or project in question and advise it of possible avenues for funding.
“I guess my question is will you be working with the RRFDC to come up with a mutually agreed-upon strategy for expenditures?” Coun. Rick Wiedenhoeft asked at Monday night’s meeting.
McCaig replied “yes,” noting he’s planning on talking with Gillon as to what the per capita rate entails and what it doesn’t.
“Are they going to be looking after the lots in the industrial park?” asked Coun. Roy Avis.
McCaig noted anyone with interest in the sites could be referred to Gillon, but the actual sale of the lots could be handled “in-house” by the Planning and Development division.
The town’s decision to not renew its contract with the RRFDC at the previous rate (roughly $14 per capita) was made within the last month, but was not revealed publicly until Monday night, when council received invoices for the RRFDC’s services for the year ahead at the $7 per capita rate (this equalled $43.653.75).
The town extended the RRFDC’s contract several times since it expired last year because council had yet to decide whether it could afford to pay up to $112,000 a year.
Council received a report from the RRFDC back on Dec. 15, at which time it indicated it would try and make a decision whether to sign a new deal by Feb. 29.
At that time, Advent told council that if the town did not choose the RRFDC, it would have a very difficult time finding a suitable replacement for similar economic development services.
The RRFDC’s most recent contract with the town expired Nov. 30, but the previous “lame duck” council was unable to renew the agreement prior to the new council taking office Dec. 1.